Luckin Shareholders Oust Chairman Charles Zhengyao Lu

(Source: Lu Zhao/Pandaily)

Luckin Coffee Inc.’s shareholders voted to dismiss its chairman Charles Zhengyao Lu, days after the board of directors failed to do so.

SEE ALSO: Charles Zhengyao Lu Remains Luckin Coffee’s Chairman

The extraordinary general meeting held in Beijing on Sunday also removed three other directors, including Sean Shao, Li Hui and Liu Erhai. Zeng Ying and Yang Jie, who were nominated by Lu, will be appointed as independent directors.

The dismissal comes after Luckin disclosed the conclusion of its internal investigation into its financial fraud. Luckin found its 2019 net revenue was inflated by roughly 2.12 billion yuan ($300 million). The company has removed a number of top executives and dozens of employees during the investigation.

Lu remained chairman for three days after a vote held at a special meeting on Thursday failed to hit the two-thirds threshold to remove him from the board.

A director can be removed by shareholders or other board directors according to Luckin’s rules.

Guo jinyi, Cao Wenbao, Wu Gang and Wai Yuen Chong remain on the board. They all joined the board after the scandal broke.